The Cabinet, led by Prime Minister Narendra Modi, has approved the Pradhan Mantri Vidyalakshmi Yojana, a scheme aimed at ensuring that no deserving student misses out on higher education due to financial difficulties.
Under this scheme, students who have been accepted into good colleges will be able to get education loans easily, with amounts up to 10 lakh rupees.
Key Features of the Scheme
The Union Cabinet approved the scheme on 6 November. Under this program, meritorious students can get an education loan without needing a guarantee for higher studies.
Students from families with an annual income of up to Rs 8 lakh can benefit from a 3% interest subsidy on loans of up to Rs 10 lakh.
The scheme will be implemented through a government portal. Students joining Quality Higher Education Institutions (QHEI) will be eligible for loans from banks
and financial institutions without any guarantee. These loans will cover all tuition fees and other related course expenses.
Additionally, for students whose families earn up to Rs 8 lakh annually, the scheme will provide a 3% interest subsidy on loans up to Rs 10 lakh.
Additional Support and Benefits
Students can also receive a 75% credit guarantee for loans up to Rs 7.5 lakh. This will encourage banks to provide education loans under the scheme.
Each year, one lakh students will receive an interest waiver. Priority will be given to students from government institutions.
Over the years, Rs 3,600 crore has been allocated from 2024-25 to 2030-31, with an expectation that 7 lakh new students will benefit from this interest waiver during this period.
The scheme’s official website is PM-Vidyalakshmi, where students can apply for loans and interest waivers.
The interest subsidy will be provided through e-vouchers and Central Bank Digital Currency (CBDC) wallets.
The PM Vidya Lakshmi Yojana, together with PM-USP, will provide comprehensive support to eligible students pursuing higher education in quality institutions, as well as technical or vocational training in approved institutions.
